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The Ministry of Social Policy considers that the issue of employment legalization is a top priority. Thus, according to experts of the Ministry, it is necessary to increase the level of employment, as well as ensure protection of labor rights and guarantees of employees, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine reports.
Currently, officially unregistered workers are deprived of many of their social rights and guarantees. They are not paid their full salary, they can be fired without severance pay and often they are not paid for their sick leaves.
At the same time, they have no guaranteed right for safe working conditions and legal holidays. Unregistered labor relations deprive citizens of Ukraine of insurance payments, as a result of an accident at work.
It is equally important that unregistered workers are also denied the right to get a decent pension because their employers in this case do not pay the contributions for pension insurance.
At the same time, trade union experts say the present level of pensions depends on the amount of contributions paid by employers for pension insurance of specific employees.
Local budgets also suffer from unregistered employment, since in this case the tax on the income of individuals is not paid. And the revenues from this tax form a major part of local budgets’ income.
Experts also say that shadow employment deprives the employer of the opportunity to demand a proper fulfillment of assigned work from an employee, as well as the compensation in case of theft or damage to the property of the employer.
In this regard, the legalization of labor relations is needed to ensure the rights and guarantees of both employees and employers.